In understanding current assets, first you must remember they have a time frame of liquidity for less than 1 year.  Below are some general descriptions of typical accounts in this category.

Accounts Receivable

The Accounts Receivable account is present only when a company is on the accrual basis of accounting, and they have extended credit to customers for which the presence of outstanding invoices is recorded.  When an invoice has been recorded as paid, the account is decreased.  When an invoice has been issued without receiving payment, it increases. 

An example would be if you send out an invoice for $100.00 and your customer doesn’t pay you for 2 weeks, you still have $100.00 in income.

Other Current Asset

The Other Current Asset account refers to items that can be converted into cash or inventory within 1 year.

Examples of this type of account are: inventory, pre-paid expenses, and employee loans.

Other Asset

The Other Asset account refers to items that are not tangible in an immediate fashion but have a cash value.

Examples of this type of account are: security deposit, goodwill, patents, and trademarks.

I hope this helps.  Check out our QuickBooks Training Classes in Houston.